BUSINESS PROFILE

Business model

Lewis Group continues to operate its proven decentralised, store-based business model which remains appropriate for the group’s lower to middle income target market.

The model is based on the principle that the sale of furniture and the granting of credit are largely interdependent as the group’s customers are reliant on credit to buy products.

All aspects of the customer relationship are managed by the staff in the stores, except for the granting of
credit which is managed centrally to ensure consistent decision-making and prudent credit risk management.

The personal and relationship-based interaction with customers in the stores creates trust and confidence while also generating high levels of loyalty and repeat sales.

This process is supported by leading technology which removes the administrative burden at store level and enables real-time management reporting.

The business model was enhanced in 2016 with the launch of a specialist call centre for South African stores. The call centre aims to further improve compliance, transparency and oversight of the in-store sales and credit application process and limit any potential misunderstandings of the costs, services and fees to be paid by customers. The call centre is housed at the company’s head office and employs 60 consultants who are able to engage with customers in English, Afrikaans, Xhosa, Zulu, Sepedi, Sesotho, Setswana and Xitsonga.